Taking security over shares in Vietnam: specific rules

- Registration of the purchaser/secured party is necessary to give effect to the transfer of ownership over shares in enforcement;

- The charter and foreign ownership restrictions may affect the attachment and enforcement of security over shares;

- New securities regulations have significantly changed the process of attachment and enforcement of security over marketable shares.

Taking share security in Vietnam is not a straightforward process. In a recent occasion, we have had the opportunity to address the general rules regarding the taking of security over shares in Vietnam[1]. The general law of security over shares is completed by a special legal framework. Indeed, various provisions of November 26, 2014 Law No. 68/2014/QH13 on Enterprises (the Law on Enterprises), will govern the taking of security over shares in private companies, especially its enforcement. Likewise, the legislation on securities sets out specific rules regarding the attachment and enforcement of the security over shares in public companies...